Emerging Markets Equity Commentary | Q4 2022

Quarterly Letter

Emerging markets are often defined by macro dynamics, but the fourth quarter was especially active on the political and policy fronts.  A few key examples include: 1) China’s 20th Party Congress (and the eventual surprise unwinding of zero-COVID policies), 2) Brazil’s presidential elections (and the social unrest that followed), 3) signs of a peaking US dollar (and its effects on global currency valuations), and 4) easing inflation in the US (which could be followed by a shift in monetary policy with carry-over effects in emerging markets).  Despite the unsettled circumstances, emerging market equities performed in line with developed markets.